(formerly Azonto Petroleum Limited)

ABN 17 117 227 086 Half-Year Financial Report 30 June 2017 Corporate Directory

Directors

Glenn Whiddon Executive Chairman

Alan Stein Managing Director (appointed 25 August 2017)

Jon Taylor Technical Director (appointed 25 August 2017)

Neil Hackett Non-executive Director

Company Secretary

Neil Hackett

Registered Office - Perth Australia

1A/1 Alvan Street Subiaco WA 6008

Telephone: +61 (0) 8 9380 8333

Facsimile: +61 (0) 8 9380 8300

Email: info@calimaenergy.com

Website: www.calimaenergy.com

Auditors

BDO Audit (WA) Pty Limited 38 Station Road

Subiaco WA 6008

Bankers

National Australia Bank 226 Main Street Osborne Park WA 6017

The Royal Bank of Scotland Queen's Cross Branch

40 Albyn Place Aberdeen AB10 1YN

Share Registry

Computershare Investor Services Pty Ltd

Level 11,172 St. Georges Terrace, Perth WA 6000 Telephone: +61 (0) 8 9323 2000

Facsimile: +61 (0) 8 9323 2033

Securities Exchange Listing

The Company is listed on the ASX Limited (ASX).

ASX Code: CE1

Home branch: Perth, Western Australia

Table of Contents

DIRECTORS' REPORT 1

AUDITORS' INDEPENDENCE DECLARATION 8 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME..9 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 10 CONSOLIDATED STATEMENT OF CASH FLOWS 11 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 12 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 14
  1. CORPORATE INFORMATION 14
  2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 14
  3. FINANCIAL RISK MANAGEMENT 15
  4. EXPENSES 15
  5. CASH AND CASH EQUIVALENTS 16
  6. OTHER NON-CURRENT ASSETS 16
  7. COMMITMENTS 16
  8. CONTRIBUTED EQUITY 17
  9. SHARE BASED PAYMENTS 17
  10. RELATED PARTY TRANSACTIONS 17
  11. SEGMENT REPORTING 17
  12. CONTINGENT ASSETS AND LIABILITIES 18
  13. EVENTS AFTER THE REPORTING DATE 18 DIRECTORS' DECLARATION 19 INDEPENDENT AUDITOR'S REVIEW REPORT 20 Directors' Report

    Your Directors submit their report on Calima Energy Limited (formerly Azonto Petroleum Limited) for the half- year ended 30 June 2017.

    Directors

    The names of the directors of Calima Energy Limited ("Calima" or "Company") in office during the half-year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.

    Glenn Whiddon Neil Hackett

    Alan Stein (appointed 25 August 2017)

    Jon Taylor (appointed 25 August 2017)

    Rob Downey (resigned 25 August 2017)

    Review and Results of Operations

    Results

    The net loss for the half year ended 30 June 2017 was $1,271,777 (2016: $1,181,375).

    Operations

    On 1 May 2017 the Company announced that it had entered into a conditional farm-in agreement giving it the right to acquire a working interest of up to 55% in oil and gas licences for the Montney formation in British Columbia, Canada (Montney Project).

    In conjunction with the Company's entry into the Farm-in Agreement, the Company also entered into a binding term sheet to acquire Calima Energy Ltd ("Calima Jersey") from Havoc Partners LLP ("Havoc"). The Calima Jersey acquisition constitutes a significant change in nature and scale of Calima's activities which requires the approval of Calima shareholders and re-compliance with Chapters 1 and 2 of the ASX Listing Rules. The transaction was completed on 29 August 2017.

    Summary of the transaction

    • Calima entered into a conditional Farm‐in Agreement giving it the right to acquire a working interest of up to 55% in the Montney Project and operatorship of the Project.

    • Calima acquired Calima Jersey, which holds interests in petroleum permits in Saharawi Arab Democratic Republic and passive minority interests in TMK Montney Limited and Bahari Holding Company Limited.

    • Calima completed a Capital Raising and raised $2.25 million by way of a prospectus offer.

    • Calima has reconstituted its Board and undertaken a 1 for 3 consolidation of its share capital ("consolidation"). All numbers below are expressed on the post‐consolidation basis unless stated otherwise.

    • Alan Stein and Jon Taylor from Havoc joined the Calima Board and all the Havoc Members (see below) joined the management team on 25 August 2017.

    • Rob Downey resigned as Non-executive Director on 25 August 2017.

    • Azonto Petroleum Limited changed its name to Calima Energy Limited on 16 August 2017.

Overview of Montney Project and Farm‐in Agreement

The Montney Project is comprised of 51,455 gross acres prospective for the Montney Formation in British Columbia, North America.

The Montney Formation is a pervasive hydrocarbon system over 100km wide that is rapidly emerging as one of North America's premier resource plays. The ultimate potential, commercial volumes of unconventional petroleum in the Montney Formation is estimated to be 449 tcf of natural gas, 14.5 bnbbls of natural gas liquids and 1.1 bnbbls of oil. The Montney Project joint venture ("Montney JV") has a substantial acreage position in the

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Calima Energy Ltd. published this content on 12 September 2017 and is solely responsible for the information contained herein.
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